Vukile Property Fund (VKE) H2 2026 earnings summary

Executive summary

• Achieved strong operational and financial results in South Africa, Spain, Portugal, and entered Italy, with FFO and dividend per share growth of 9.3%, both ahead of guidance.

• Significant portfolio transformation through asset recycling, accretive acquisitions, and entry into Italy via acquisition of three shopping centers.

• Strategic focus on organic growth, value-add projects, bolt-on acquisitions, and entry into new geographies.

• Portfolio now valued at ZAR 64 billion, with 70% offshore exposure and diversified presence across South Africa, Iberia, and Italy.

• Strong income and growth prospects driven by robust tenant relationships, innovation, and customer-centric strategies.

Financial highlights

• Revenue increased to R4.5 billion, up 16% year-over-year; FFO up 20% to R2.4 billion; FFO per share up 9.3% to 173.6 cents.

• Dividend per share up 9.3% to 144.0 cents; payout ratio at 83%, with plans to move to 85%.

• NAV per share increased by 12% to R25.03 despite new share issuance.

• Group LTV reduced to 38.4%; interest cover ratio improved to 3.0x.

• Strong liquidity with R3.7 billion cash and R3.9 billion undrawn facilities, covering debt maturities 2.3x.

Outlook and guidance

• Forecast FFO per share growth of 8%-10% and dividend per share growth of 10%-12% for the next year.

• Dividend payout ratio to increase to 85%.

• Capital raise of R2.8 billion in May 2026 supports further expansion.

• Expect continued inflation-beating growth in all core markets, with strong prospects for the next five years.

• Guidance assumes a ZAR/EUR rate of 19.60, with most dividend flows hedged.